Parliament Passes Bill Allowing Private Sector to Mine Lithium and Other Atomic Minerals: The Mines and Minerals (Development and Regulation) Amendment Bill, 2023, was recently passed by the Indian Parliament, enabling the private sector to undertake mining operations for six out of 12 atomic minerals, including lithium, as well as deep-seated minerals like gold and silver. This historic move aims to increase domestic exploration and production of vital minerals, as well as expedite the expansion of companies that rely on these resources.
Daily Current Affairs Quiz: August 2023
Opening Up New Opportunities for Private Sector:
- The Bill grants permission to private companies to mine and explore previously reserved atomic minerals, fostering increased competition and investment in the sector.
- Lithium, beryllium, niobium, titanium, tantalum, and zirconium are among the atomic minerals presently available for private exploration.
- Deep-seated minerals such as gold, silver, copper, zinc, lead, nickel, cobalt, platinum group minerals, and diamonds will also be accessible for mining and auction in the private sector.
Empowering the Central Government:
- The legislation empowers the central government to conduct exclusive auctions for mining leases and composite licenses for certain critical minerals, ensuring transparent allocation and efficient resource management.
Boosting Electric Vehicle and Energy Storage Industries:
- The inclusion of lithium in the list of minerals available for private exploration is a significant move as it is a crucial component in manufacturing batteries for electric vehicles and energy storage devices.
- Increased local availability of lithium is projected to fuel expansion in the electric vehicle sector and boost renewable energy storage options.
Enhancing Domestic Mineral Production:
- By opening up mining to the private sector, the government aims to reduce the country’s dependence on imports for the 95 “most precious” minerals found in India.
- This transition is projected to lead to increased exploration and production of essential minerals in order to meet the country’s growing needs.
Addressing Challenges of Deep-Seated Minerals:
- Deep-seated minerals such as gold, silver, and others present challenges in exploration and mining due to their depth and complexity.
- Private sector involvement is seen as a potential “force multiplier” to enhance production capacity and overcome the difficulties associated with deep-seated mineral extraction.
